News Corp cuts jobs at major Australian mastheads

News Corporation is taking the axe to its Australian publications as part of the publisher's ongoing focus to reduce costs.

Sources said News Corp is cutting about 30 editorial jobs, ranging from journalists to the outsourcing of production staff across its Australian publishing portfolio, including The Australian, Herald Sun and The Daily Telegraph. It's believed the redundancies are a mix of voluntary and forced.

It's believed some production staff will leave News Corp and join Pagemasters as sub-editors. Pagemasters is a subsidiary of Australian Associated Press, which is owned by Fairfax Media, News Corp and Seven West Media.

News Corp chief executive Robert Thomson is overseeing a restructuring and transformation project of its Australian businesses. Reuters

The cost cuts are part of an overarching restructuring and transformation project within News Corp's Australian business. Sources said there is no headcount target, rather the measures are part of overall budget reduction targets.

Targets are being set by state and it is up to each division to outline how it will hit its cost cutting target – with headcount being a significant chunk.

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"As part of our overall business strategy, we have an ongoing focus on how we can identify opportunities to make our operations more efficient," a News Corp spokeswoman said.

"Equally, this applies to our editorial operations and how we identify opportunities to create the most efficient digitally responsive newsrooms."

Under pressure

News Corp chief financial officer Susan Panuccio alluded to further cost cutting in the Rupert Murdoch-controlled company's Australian business during its global full-year results in August.

However, Ms Panuccio did not specify a cost-cutting target number as the business has done in previous years. Over 2016-17 and 2017-18, News Corp flagged more than $40 million in cost cuts for each year from the Australian businesses.

News Corp is under pressure to reduce costs in its publishing businesses in Australia as it ramps up its investment in pay television business Foxtel.

Max Mason is an award-winning journalist covering the media sector. He joined the The Australian Financial Review in 2013 and has worked at The Sydney Morning Herald, The Age, Fox Sports Australia and news.com.au. Connect with Max on Twitter. Email Max at max.mason@afr.com

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